Allahabad HC remands matter to Adjudicating Authority to decide on Insecticide Exemption claim of Ethephon seized under Customs Act [Read Order]

The Allahabad High Court remanded matter to Adjudicating Authority to decide on Insecticide exemption claim of Ethephon seized under the Customs Act, 1969.

The petitioner, M/s Gold Ripe International Private Limited, is a duly incorporated company. It is engaged in the business of import, manufacture, and trading in Ethylene Ripener/Ethephon. For that, it imports bulk quantities of that commodity from China and repacks the same in smaller packings. At present, the petitioner imported 23 metric tons Ethylene Ripener/Ethephon 20%, in bags weighing 25 Kgs. Each, against Invoice dated 18.05.2021.

The entire quantity of goods detained have been seized under Section 110 of Customs Act, 1969. At present, the petitioner has also been issued a Show Cause Notice under Section 124 of the Customs Act. Confiscation proceedings are pending.

The counsel for the petitioner submitted that under Section 110 read with Section 111(d) of the Customs Act, only such goods may be seized and or be confiscated as may have been imported contrary to any prohibition imposed either under the Act or any other law for the time being in force. Referring to the provisions of the Customs Act, it has been submitted that no such prohibition has been imposed either on Ethephon or Ethylene Ripener.

Referring to the reason given in the seizure order and the provisions of Insecticide Act, 1968 ('Insecticide Act'), it has been submitted that though Ethephon is an insecticide yet there is no prohibition in law created under the Insecticide Act on the import or manufacture of Ethephon.

Heavy reliance has been placed on the language of Section 38(1)(b) of the Insecticides Act to submit that Ethephon is not an insecticide used either to prevent, destroy, repel, or mitigate any animal or plant life, not useful to human beings.

A Division Bench of Justices Saumitra Dayal Singh and Rajendra Kumar-IV observed that “At present, Ethephon being a scheduled commodity under the Insecticides Act, it falls outside the scope of any fruitful discussion if it is an insecticide for the purpose of the Insecticide Act. Clearly, it is. In absence of any further fact proven to establish any exemption available to it under section 38 of the Insecticides Act, prima facie it stands made out that Ethephon is a regulated insecticide.”

“Accordingly, while no relief is being granted as prayed for, the writ petition is disposed of with a direction, in case the petitioner files its reply to the show cause notice dated 21.12.2021 within a period of four weeks from today, the adjudicating authority may ensure expeditious conclusion of the adjudication proceedings, after due opportunity of hearing etc. to the petitioner, preferably within a period of three months therefrom” the Court noted.

To Read the full text of the Order CLICK HERE

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